The DuPont Case Is a Good Example of an Incentive

question 23

Essay

The DuPont case is a good example of an incentive package gone awry.In review,it placed a portion of employee's pay into an "at-risk pool." If the division had exceeded expectations,the employees would have received a bonus from the pool.How would a "relative performance contract" have saved the DuPont bonus system?

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Definitions:

Long-Term Investment

Financial assets or securities that are held for an extended period, typically for several years or more, with the expectation of substantial returns.